Bajaj Finance to Sell 2% Stake in BHFL via Block Deal

Bajaj Housing Finance Ltd. (BHFL) is back in the spotlight as its promoter, Bajaj Finance, prepares to sell a 2% stake through a large block deal. The proposed transaction involves around 16.6 crore shares, with a floor price of ₹95 per share, roughly a 9% discount to the previous NSE closing price of ₹104.59. Currently, the promoter holds nearly 88.70% of BHFL, or around 739 crore shares, so even a 2% sale is meaningful in terms of boosting public float and market liquidity.

This development comes at a time when BHFL’s operational performance remains strong. In the quarter ended September 2025, the company posted an 18% year-on-year rise in profit after tax, coming in at ₹643 crore compared to ₹546 crore in the same quarter last year. Revenue also grew 14% YoY to ₹2,755 crore, reflecting steady business momentum. Sequentially, the company reported improvement as well, with both revenue and PAT rising over Q1FY26.

However, the stock performance has been far from encouraging. Since its listing in September 2024, the share price has slipped around 23% despite strong earnings. The technical picture is also weak: the stock currently trades below both its 50-day and 200-day simple moving averages, indicating sustained selling pressure. Additionally, BHFL’s Money Flow Index (MFI) sits near 23, an indicator of oversold conditions, as any reading below 30 generally signals heavy selling exhaustion.

Given this backdrop, the block deal carries several implications. First, it will increase public shareholding, enhancing liquidity and enabling a broader investor base to participate. The promoter group has clarified that it will not purchase shares during the sale window, which runs from December 2, 2025 to February 28, 2026. Second, the discounted price could attract institutional interest looking to accumulate shares at lower levels, especially given the company’s consistent earnings growth.

At the same time, promoter stake sales often trigger initial negative sentiment, as markets sometimes interpret them as a signal of reduced confidence. Combined with the stock’s muted performance since listing, investors may remain cautious until clarity emerges on demand for the block deal and post-sale shareholding dynamics.

Going forward, several factors will be crucial to track such as, the success and scale of the actual stake sale, institutional participation, upcoming quarterly results, and whether oversold technicals lead to a reversal or deeper correction. Macro conditions such as interest rate movements and sector sentiment within the broader NBFC and housing finance industry will also influence the stock.

Overall, while the stake sale could improve liquidity and offer an attractive entry point, investors will closely watch how the stock reacts in the near term and whether the company’s strong financial performance translates into a sustained turnaround.